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Economic Growth and Water are Inextricably Linked

Water for Economic Growth Global Water Summit 2014 - Paris, France 7- 8 April, 2014 Usha Rao-Monari CEO, Global Water Development Partners. Freshwater is finite. Demand is outstripping supply as global economies grow with all use categories competing for the same resource.

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Economic Growth and Water are Inextricably Linked

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  1. Water for Economic GrowthGlobal Water Summit 2014 - Paris, France7- 8 April, 2014Usha Rao-MonariCEO, Global Water Development Partners

  2. Freshwater is finite. • Demand is outstripping supply as global economies grow with all use categories competing for the same resource. • We are at a tipping pointwhere the availablefreshwater supply cannotsupportcontinuedgrowth. • Global water withdrawals by 2050 to increase by 55%: • Manufacturing – 400% • Thermal Electricity Generation – 140% • Domestic Use – 130% Economic Growth and Water are Inextricably Linked Global Water Demand (Freshwater Withdrawals): Baseline Scenario 2000 and 2050 Source: World Water Development Report, March 2014

  3. Water supply to meet increased demand can only be obtained through four (4) basic sources: Options for New Water Supply

  4. The projections for 2035 are startling. There will not be enough freshwater to support expected growth. • PopulationGrowth– from 6.8 Billion today to 8 Billion • Urbanization – 75% of the global population will live in cities • Food– Production will have to increase by 70-100%; a 30% shortfall in global grain production caused by water scarcity • Energy– Production will have to increase by at least 40%, needing a 75% expansi0n of existing energy infrastructure The 20 Year Outlook is Unsustainable 40% global shortfall between forecast demand and available supply by 2030

  5. There is no time for complacency. The 10 year outlook stretches available resources beyond capacity. By 2025: • 1.8 Billion – will be living in regions with absolute water scarcity, and 75% of the world population could be under stress conditions; this is both Physical Water Scarcity and Economic Water Scarcity • Water Withdrawals – will increase in developed nations by 18% and in developing countries by 50% • Energy – energy needs dependent on availability of water may not be met: • 50% of all water use in US is for coal-fired energy • 40% increase in energy demand would imply increase in water demand by 165% A Bleak 10 Year Outlook This challenge is becoming steeper as demands increase, especially in emerging economies, where agriculture, industry and urban development are evolving quickly. We must find sustainable ways to ensure access to quality freshwater and energy for all. Irina Bokova, Director-General of UNESCO, World Water Development Report 2014

  6. We can no longer delay taking affirmative far reaching steps to address the supply demand imbalance without negative impact on global economic growth. • Water must become a fundamental input into growth and the nexus between food, energy and water will have to be better managed and not just talked about. • Company and country growth projectionswillhave to take water availabilityintoaccount as a fundamental risk factor. • New models of water management will have to evolve to encourage the efficient allocation of water between all competing users. • To support projected growth, all stakeholders will have to work together to address demand side management while making sure an adequate water supply is available from all freshwater, reuse and desalination sources. Economic Growth in the Balance

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